What is privatisation? What are the various ways of privatisation? How is it different from nationalisation?

Privatisation:Privatisation implies shedding of ownership or management of a government owned enterprise. It is the transfer of a function, activity or organisation from the public sector to private sector.

Various ways of privatisation:There are two ways of privatisation:

(i) By withdrawal of the government from ownership and management of public sector companies and (ii) by outright sale of public sector companies.

Difference between privatisation and nationalisation:In privatisation, there is transfer of an organisation from government sector to private sector, whereas in nationalisation, there is transfer of an organisation from private sector to public sector.